Briefly stated, dynamic conversion software transfers the profit from converting currency on a card transaction from the issuing side of the equation to the acquiring side, Murphy says.

If a particular transaction were subject to a 2.5% issuing-bank surcharge and a 1% Visa fee, dynamic conversion would make that resulting total of 3.5% available the acquiring side.

That’s accomplished by converting the card’s currency, like Euros, to another currency, say dollars, before the transaction is handed over to the issuing side. That means the transaction is no longer a foreign transaction for the issuing side and it can no longer charge foreign-transaction fees.

The acquiring bank, the ISO, the processor, the merchant and Monex can then charge the 3.5% and split it, Murphy says.

“We provide the recources,” he notes.

Monex works with acquiring banks and has not yet worked with ISOs. But the company is open to beginning to work with ISOs that contact it, Murphy says.

Hotels, restaurants, car-rental companies and retailers in parts of the United States with heavy tourist traffic would be good prospects for dynamic currency conversion, he says.

Any business that does 5% of more of its transactions on cards denominated in foreign currency would be candidates for the service, Murphy says.

Monex handles the details of conversion, making it a currency-exchange company, not just a software company, he maintains.